Module 3 • Market feasibility study • Government emphasis


If the government regards an industry as a national priority then it can be assumed that financial support can be expected. The building industry in South Africa is an example of a national priority.


• World trends What happens elsewhere in the world is bound to influence us. The growth in the information (computer) industry is one example. The tourism industry in South Africa is another example.


• New developments This can be new buildings, which means there are more people around or even new technological inventions, which means a change in lifestyle.


• Infrastructure


Electrification is a very good example of improvements of infrastructure. With the electrification to a township there is a greatly increased demand for household appliances such as kettles, irons and fridges. Installations of


electrical wiring and the repair of such products are further examples. 2.3 Marketing information


In order to determine the market feasibility of your product, you must first collect all relevant market- related information. There are various ways of collecting the information needed, but be warned that this can be a time-consuming process. Therefore, know before you start exactly what information is needed.


Examples are: • The price that customers are prepared to pay. • The profile (market segment) of your customers. • Where potential customers stay. • Why they would rather buy from you. • There views about your product or service.


2.3.1 Collecting of data There are two types of data, namely primary and secondary.


• Primary data Primary data is raw information collected by the entrepreneur. This information must still be reworked, but can be very helpful in determining the feasibility of a particular business.


DEFINITION


Information is processed data. Data is what is normally collected, but only becomes information once it is reworked and interpreted.


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